U.S. sets oil production, petroleum demand records

Drilling

A recent American Petroleum Institute (API) statistical report showed the U.S set a new record for oil production at 12.1 million barrels a day (mb/d) in February, continuing America's position as the world's leading oil producer. The increased production reflects the rise in drilling activity development over the past quarter. In addition, petroleum demand was the strongest for that month in more than a decade at 20.4 mb/d.

"High U.S. consumer demand for gasoline, diesel and jet fuel is being met right here at home with record U.S. oil production," said API Chief Economist Dean Foreman. "America's natural gas and oil industry is driving safe and responsible production to meet demand here and abroad. A strong energy industry benefits all Americans and strengthens our nation's economy and national security. Due to industry's leadership, U.S. consumers continue to enjoy low prices at the pump, and our allies overseas have a friendly energy partner by their sides."

Report highlights included gasoline demand (8.9 mb/d) grew by 1 percent year to year and total petroleum inventories increased 4.1 percent above the fiveyear average.

"Thanks to affordable, abundant and reliable American-made natural gas and oil, Americans are saving more money on their energy bills while also reducing CO2 emissions at home and abroad," said Foreman. "In fact, API's Industry Outlook found Americans saved $300 billion on energy costs between 2013 and 2016. It's a win-win deal for consumers and the environment, and as the U.S. progresses toward being a net exporter of oil as well as natural gas, industry looks forward to advancing the next chapter of this success story to new heights."

Further highlights from the API Industry Outlook for Q1 2019 included:

Remarkable (+0.82) correlation between U.S. oil and gas production and real GDP growth since 2015.

Strong value added in sectors advantaged by the U.S. energy revolution.

Criticality of U.S. LNG exports and how strong productivity has kept domestic natural gas prices below $3 per million Btu despite a tenfold increase in net exports.

$300 billion of American energy savings between 2013 and 2016, thanks largely to U.S. oil and natural gas.

Importance of U.S. natural gas production in cutting energy costs for consumers while also lowering emissions.